With a long leasehold premises in Workington, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than eighty years left. Anyone in Workington with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once the lease term has below 80 years outstanding, under the relevant Act the landlord can calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Workington with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Workington,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Workington valuers.
After protracted correspondence with the freeholder of her two bedroom apartment in Workington, Kate initiated the lease extension process just as her lease was nearing the critical eighty-year mark. The legal work was concluded in October 2012. The freeholder’s charges were restricted to under four hundred GBP.
Ms G Moreau acquired a one bedroom apartment in Workington in November 2003. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative premises in Workington with 100 year plus lease were in the region of £176,200. The mid-range ground rent payable was £65 billed per annum. The lease expired on 20 September 2081. Given that there were 56 years remaining we calculated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 not including legals.
Last Autumn we were e-mailed by Mr N Nguyen , who bought a studio flat in Workington in August 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Identical premises in Workington with an extended lease were valued about £237,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease finished on 16 June 2092. Considering the 67 years remaining we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 plus legals.